The acquisition, for an undisclosed sum, sees Waterloo become a wholly-owned business within the HgCapital-owned alliance, although it will still trade under its own name. The motor factor was founded in 1928 by the grandfather of current managing director Jim Munday, who will relinquish overall control, and has branches in Beverley, Bridlington and Hull.

Peter Sephton, chief executive of the automotive parts distributor alliance, said: ‘I’m delighted Jim Munday has agreed to work with us to facilitate the integration into The Parts Alliance and the transition of leadership to David Brooks, founder of SAS Autoparts, as we seek to extend our branch footprint and optimise our distribution and reach into the region.

Peter Sephton

‘Jim will continue to advise us on development projects and we are delighted to have Jim and his colleagues at Waterloo as part of our group. As a unified multi-brand operation, it’s important to us when we bring in new businesses that we maintain that local brand and management, as they bring their unique local knowledge while we add national strength. It’s a powerful combination.’

Munday said: ‘As a three-generation family business, building long-term relationships and providing quality local service are in our DNA. We look forward to working with Peter Sephton and the rest of the management team to accelerate our growth in what are very exciting times for our trade.’